Homogenizing Payment Transaction Data Across Disparate POS Systems
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Solution Overview
Problem
Shopping centers and malls lack a system to incentivize repeat transactions among multiple merchants within a geographic area, as existing rewards programs are limited to individual merchants and do not allow for seamless data sharing due to disparate point of sale systems.
Innovation Solution
A system that uses payment processing network data to create a geographically limited rewards program, allowing customers to earn and spend rewards across multiple merchants within a defined area by homogenizing transaction data from disparate point of sale systems, leveraging smartphones to collect and process data independently of merchant systems.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If merchants use disparate point of sale systems to track transactions, then each merchant can independently manage their own rewards program, but shopping centers cannot aggregate transaction data across merchants to provide multi-merchant rewards
Solution Approach 1:
The patent introduces a shopping center server as an intermediary that receives transaction data from multiple disparate merchant point of sale systems, homogenizes the data into a unified format, and enables multi-merchant rewards programs. This mediator resolves the incompatibility between different POS systems without requiring changes to the merchant systems themselves.
Solution Approach 2:
The shopping center server performs multiple functions: it acts as a data collection point for all merchants, a data homogenization engine, a rewards calculation system, and a communication hub between merchants and the shopping center. This multi-functional system eliminates the need for separate systems for each function.
2Adaptability or versatility
If merchants share transaction data with shopping centers, then shopping centers can provide multi-merchant rewards programs, but merchants face increased security risks and data privacy concerns
Solution Approach 1:
The patent implements differential data sharing where each merchant chooses what level of data to share with the shopping center. Merchants can share only essential transaction data (amount, date, merchant ID) while keeping sensitive customer information local. This localized data retention reduces security risks while maintaining rewards program functionality.
Solution Approach 2:
The shopping center server acts as a secure intermediary that receives, homogenizes, and processes transaction data without requiring merchants to expose their internal systems. The server mediates between data sharing needs and security concerns by implementing controlled data access and processing.
3Productivity
If traditional coupons are used to drive sales in shopping centers, then customers can receive immediate discounts, but the system cannot track and reward repeat transactions across multiple merchants
Solution Approach 1:
The patent implements a feedback mechanism where the shopping center server continuously monitors transactions across all merchants, tracks customer purchase patterns, and automatically generates and distributes rewards based on accumulated spending. This closed-loop system provides real-time feedback to customers about their rewards status and incentivizes repeat transactions.
Solution Approach 2:
The system pre-calculates and stores reward rules, thresholds, and eligibility criteria in the shopping center server before transactions occur. When a customer makes purchases, the system automatically applies pre-defined reward logic without requiring manual coupon distribution or post-transaction processing, enabling seamless repeat transaction tracking.
Data Source
AI summary
A method for homogenizing payment transaction data acquisition from disparate merchant points of sale includes tracking payment card transactions between enrolled payment cardholders and enrolled merchants, based on the tracked payment card transactions creating a database of rewards eligible transactions, and querying the database of rewards eligible transactions and creating a homogenized transaction database including a specific set of transaction datums retrieved from the database of rewards eligible transactions, wherein the homogenized transaction database includes transaction, information from at least a first transaction involving a first merchant using a first point of sale system and a second transaction involving a second merchant using a second point of sale system, the first point of sale system and the second point of sale system differing from one another.